ECON6000 | Economic Principles & Decision Making | Economics

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Your task:

Your task is to write a 3,000-word report addressed to the Board of Directors of Schmeckt Gut in which you address the following:

Do you think you can match the different projections? That is, do you think that a 5% increase in income is associated with a 10% tariff rate and a 2% inflation rate? Explain by linking your discussion to the following concepts:

o  supply and demand
o aggregated demand and aggregated supply o the Philipps Curve, and
o  the Laffer curve.

What impact would the different predictions of income development, inflation rate development and tariff rate development have on the potential demand of Schmeckt Gut? Conduct a multiple regression analysis using data in the supplied Excel file and then interpret the results. Fully discuss and explain their implications.

Make recommendations as to what the Board of Directors should do under each of your scenarios, based on your matching of the predictions.

The precise format of the report will be informed by research undertaken by the student using the Torrens University library. Formal document sections such as executive summary, table of contents and appendices are not counted in the word count. Assume that the prescribed word limit is literally a limit and that the board will reject any report that breaches it.

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